Are pay day lending establishments predators or are they a useful institutions? Sadly, many of those that do use these services are getting themselves deeper and deeper into a hole of debt. If you want to see smoke come out of KSL’s financial advisor Clark’s ears then mention pay-day loaning. There were 21 pay day lenders in Salt Lake City in 2007, only two years later there are more than 50! How many people really understand the idea of personal finance? With the fact that so many exist, what does this say about our society? What does it say about credit unions or other financial institutions?
Payday loaners are the tip of the iceberg; they are the product of a larger problem.
Are they predators or are they defending a place in the marketplace?
Caller Mary has a loan for 700 dollars. She has to pay 70 dollars a week for 12 weeks. She is a grandma raising two grandkids and works full-time but is able to somehow stay afloat. She feels that payday lenders should be outlawed.
Caller Greg would vote for the establishment of payday loaners. There is a desperation factor that the payday loaners meet. It’s amazing how many businesses do not cater to their customers’ needs.
Caller Mike thought that in the financial world there are so many other providers that we don’t have to use the payday loaners. There is a need out there that is not being addressed by the banks and credit unions. Maybe it is a matter of more convenient hours?
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